Outsource to Fuel Your Growth in 2023

What is outsourcing?

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In the current business world, outsourcing has become an increasingly popular option for companies looking to cut costs and improve efficiency. But what exactly is outsourcing? And is it right for your business?

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Outsourcing is hiring outside specialists or generalists to perform tasks that normally are in-house functions. Often, this involves delegating time-consuming assignments across multiple departments — from Sales and Accounting to Administrative and Customer service.

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It is a business practice because it can save money and time and often result in improved quality of work. Ultimately, the goal is to free up time for your team to focus on more revenue-generating tasks.

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The Benefits of Outsourcing (2022)

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As a business leader, you are looking for ways to grow your company. One way to do that is by outsourcing tasks or processes. Outsourcing can free up your time and energy to focus on the core aspects of your business. It can also be a cost-effective way to scale your business. When done right, outsourcing can become a part of a business' strategy for any organization and a tool for fuelling growth.

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Here are four reasons why outsourcing can help fuel your growth:

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1. ‍Get access to expert talent.
   When you outsource, you tap into a pool of highly skilled professionals who can help take your business to the next level. 
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2. Save time and money.
   Outsourcing can be more cost-effective than hiring in-house staff, and it will free up your time to focus on your core competencies.
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3. Scale quickly and efficiently.
   Outsourced help makes it easier to scale up or down as needed without making any changes to your team or operations.
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4. Gain a competitive edge.
   By outsourcing critical functions, you can stay ahead of the competition and continue driving growth for your business.

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Top 8 objectives why businesses outsource

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There are multiple reasons why businesses choose to outsource their activities. According to Deloitte Study and Blog Post from BrandonGaille, here are some of the most-cited reasons for choosing to outsource:

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The graph above shows that businesses outsource for multiple reasons, but the most common motivation is to reduce or control costs. Other causes include accessing tools and resources & skills, and knowledge that is not available internally or wanting to focus on core business activities while delegating non-core functions. 

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Whatever the reason, businesses need to carefully consider the pros and cons of outsourcing before deciding.

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Why You Should Outsource Your Sales Activities?

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Outsourcing sales can be a great way to grow your business. When it comes to sales, quality should always trump quantity. A professional outsourced sales team can help you close more deals and help you reach new markets while saving money on training and resources.

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One should consider that markets, needs, and trends are changing in a fast-moving digital era. Sales carry much more weight in terms of revenue generated and capital invested. Without the right team and processes, it is impossible to gain traction, reach performance, reach KPIs and collect valuable data. Not to mention all the endless testing and optimization that can leech away time and resources that most start-ups and scaling businesses cannot afford to waste.

So, if you are thinking about outsourcing sales, there are two things you should keep in mind. First, make sure you partner with a reputable company that has a proven record of experience in the industry. Second, consider what type of products or services you want to sell and if it alligns with the partners previous cases. Thereby you will reassure that your product or service will have the necessary quality outreach.

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Pros and Cons of Outsourcing Sales

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Although outsourcing could be highly beneficial for most businesses, it is not always the ideal choice for every company. Weighing the pros and cons of outsourcing sales is integral in making the right decision for your business.

Here are some of the main pros and cons of outsourcing your sales function.

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Pros:

1. Outsourcing sales can increase revenue without increasing overhead costs proportionally.
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2. It can be a good option if your sales team is operating in a volatile or shifting industry where you do not want to hire and fire sales reps as things change.
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3. ‍Usually, external sales agencies tend to have all the necessary software and technology to deliver end-to-end sales solutions and complex market reports.
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4. Outsourcing lead generation reduces the ramp-up time needed to get sales development reps to perform quality outreach.

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Cons:

1. You have a potential reputational risk with outsourcing sales, as a third-party partner will deal with your client relationships.
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2. You will need to build a relationship with the outsourcing vendor (and outsourced sales team) and manage the contract to ensure you get the quality and results you expect.
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3. There could be more upfront and one-time costs versus hiring a business developer internally, as salary, commissions, and other hiring costs will depreciate over time.
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How to Find the Right Sales Partner?

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How do you know if you outsource to the best company for your specific needs?

There are a few key things when looking for a partner that is a good fit for your company.

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1. ‍Research
   ‍Take the time to understand the market and how the different companies differentiate from one another and what they offer. Think about: What is their sales approach? Or what kind of software tools are they using?
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2. ‍Define your needs
   ‍Know what your needs are before reaching out to a potential partner. Maybe you need someone with native language skills?
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3. Reach out
   ‍Reach out to several different companies and ask for references and/or cases from previous partnerships. Also, remember to get a sense of their customer service - you want to be sure they are responsive and helpful.
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4. Get referrals
   ‍Ask for recommendations from trusted sources in your network.
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Once you find a company that meets all these criteria, you can be confident that you are on the right path, making the best decision for your business.

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Best Practices for Building Relationships

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When you find the right partner to manage your activities, there are some best practices you should keep in mind to have a well-oiled outsourcing machine. Following these will help ensure successfully outsourced projects and smooth communication and working relationships with your vendors or service provider.

Do your research, be clear about what you need and manage expectations on both sides, don’t be afraid to ask questions, build a partnership instead of just a business relationship — and finally, learn how to give and share feedback effectively on an ongoing basis.

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Communication is the key, so having meetings once or twice a week is very important.

Implementing even just a few of these tips can make a difference in the overall success of your outsourcing.